Type: Legislation
In July 2023, Uganda has made significant amendments to its Value Added Tax (VAT) system, broadening the range of digital services subject to VAT. The updated legislation, known as THE VALUE ADDED TAX (AMENDMENT) ACT, 2023, now requires non-resident e-service providers to charge and collect VAT, a responsibility they have held for several years.
The changes entail the inclusion of online auction services, expanding beyond the scope of goods sold exclusively through online auctions. Additionally, a new definition has been introduced for “electronic services,” encompassing services provided via online or digital networks by suppliers operating outside Uganda but serving recipients within the country. These services include websites, software, access to databases, music, films, broadcasts, advertising platforms, streaming platforms, cab-hailing services, cloud storage, and data warehousing.
Effective date: July 2023